The total market for media technology products and services declined 4.3% to $49.3bn in 2015, according to the newly released 2016 Global Market Valuation and Strategy Report (GMVR), published by IABM DC, a joint venture between IABM and Devoncroft Partners.

A number of factors contributed to the year-on-year decline in media technology spending. These include significant currency fluctuations, ongoing consolidation among media organizations, the strategic move from CAPEX to OPEX as end-users evolve their business models, and for the first time in six years, negative growth in services as well as products.

Revenues in 2015 from Products¹ declined 4.4% to $22.01bn – 44.6% of total industry revenue.

For the four year period from 2012-2015, the compounded annual growth rate (CAGR) for the total industry was -1.0%. During the same period, the CAGR for media technology products and services was -2.4% and +0.1%, respectively.

Foreign exchange rate fluctuations had a significant impact in 2015. In Brazil and Russia, steep currency declines effectively doubled the prices for some media technology products thus deterring investment. Other currencies including the Canadian Dollar, Euro and Japanese Yen also declined versus the US Dollar, changing the competitive dynamic for many players. While many media technology suppliers have both revenues and costs in multiple currencies and are able to mitigate swings in foreign exchange to some extent, the same is not true for managed service providers that operate in a single territory. Much of the decline in Europe reported for the services segment results directly from the weakening of the Euro against the US Dollar in the period.

Other notable drivers for the decline in overall revenues range from the end of government-backed analog switch-off programs in many countries, to the ongoing consolidation of major media companies, to a pronounced shift in technology procurement strategies among end-users, including broadcasters, pay TV operators and media service providers.

These factors, and their impact on the market, are explored in more detail throughout the 2016 GMVR. Now in its seventh edition, the Global Market Valuation and Strategy report is an essential tool for all broadcast industry strategists. The 2016 edition provides market sizing data for approximately 150 product categories across nine market segments. Data tables provide regional splits for product and service revenues, as well as forecasts to 2019 at segment and sub-segment levels. The data tables are accompanied by extensive written commentary (available in Q1 2016), that discusses the drivers affecting the market and an analysis of how changing markets and technologies may shape the future composition of the broadcast and media technology industry.

Joe Zaller, founder and president of Devoncroft Partners, said, “The commercial models of many broadcasters and media companies have changed dramatically over the past few years. The combination of new digital and on-line delivery platforms, the shift to file-based workflows, the increasing drive for digital monetization, and the promise of COTS IT hardware managed by software defined networks have all been catalysts for an industry-wide rethinking of both what technology is required to support future business goals, and whether it will be purchased or outsourced. We believe these factors will continue to alter the structure of the industry through the end of our forecast period – 2019.”

Peter White, IABM CEO, said, “Although aggregate industry growth declined overall in 2015, the broadcast and media technology market is still undoubtedly a dynamic and exciting place to be. There was a significant impact on revenues overall from extensive weakening of most currencies against the US Dollar in the year, which particularly impacted services revenues in EMEA where there is a concentration of services suppliers. In addition, although revenues in the majority of product categories experienced a degree of decline, some segments of the market are growing strongly. The Global Market Valuation and Strategy Report illuminates this, and will make compelling reading for those companies that are looking to maximize business opportunities.

“The changing media landscape of the demand side of the industry is clearly affecting the supply side, and many organizations throughout the broadcast and media ecosystem have had to reinvent themselves. Despite a continuing downward trend so far in 2016, confidence still remains in the sector and spend on research and development is continuing at impressively high levels. We are experiencing a wave of innovation and change both from existing suppliers and from new entrants in the market which is fueling cautious optimism for 2016 and beyond; our industry clearly believes that it can win through and is backing itself to do so.”

¹Products include hardware, software and associated maintenance and support revenues.

Considered by many to be the definitive source for broadcast and media technology market sizing and trend analysis, the GMVR draws on actual and future projected revenue and product shipment data supplied by media technology vendors and service providers under a framework of strict confidentiality. In aggregate, the 2016 GMVR data model includes approximately 3,000 technology vendors and service providers.

The 2016 Global Market Valuation and Strategy Report is available to purchase from IABM or Devoncroft Partners.

Gloucestershire, UK and Coronado, CA — Spending on products and services in the $48 billion broadcast and media technology industry shifted dramatically between 2012 and 2014, according to the newly released Global Market Valuation and Strategy Report (GMVR), published by IABM DC LLC, a joint venture between IABM and Devoncroft Partners.

Considered by many to be the definitive source for broadcast and media technology market sizing, and now in its tenth year, the GMVR draws on actual and future projected revenue and product shipment data supplied to IABM DC by technology vendors and service providers under a framework of strict confidentiality. In aggregate, the 2015 GMVR data model covers approximately 3,000 technology vendors and service providers.

After experiencing a 4% CAGR (compounded annual growth rate) between 2009 and 2012, the market total for broadcast and media technology products and services slowed considerably between 2012 and 2014, achieving a CAGR of 1.3%.

Significantly, revenue from products (both hardware and software) declined by 0.5% between 2012 and 2014, while revenue from services increased by 2.9%. During 2014, services accounted for approximately $26 billion, or 54% of total spending by broadcast and media technology end-users.

“The commercial models of many broadcasters and media companies have changed dramatically,” said Joe Zaller, founder and president of Devoncroft Partners. “The combination new digital and on-line delivery platforms, the shift to a file-based workflows, the increasing need for digital monetization, and the promise of commercial-off-the-shelf (COTS) IT hardware managed by software-defined networking have been catalysts for an industry-wide rethinking of both what technology is required to support future business goals, and whether it will be purchased or outsourced. We believe these factors will continue to alter the structure of the industry through the end of our forecast period (2018).

These factors, and their impact on the market are explored in more detail throughout the 2015 GMVR.

Peter White, chief executive, IABM says: “Although aggregate industry growth has changed, this is undoubtedly a dynamic time for our industry. Revenue in some product categories has shown a degree of decline, however other parts of the market are growing quickly. The changing media landscape affecting the demand side of the industry is having repercussions on the supply side as well, requiring a re-thinking of many business models. During this period of “metamorphosis” there has been a slowdown of investment by end users as they seek a clearer vision of the business model and product roadmap going forward. Despite this hiatus confidence remains high in the broadcast and digital media technology market, particularly with the emergence of the many new innovations and opportunities that we anticipate will have a positive impact on growth.”

A must-read document for all broadcast industry strategists, the 450-page 2015 GMVR provides market sizing data for approximately 150 product categories, across nine market segments. It includes extensive written commentary about the drivers affecting the market, and an analysis of how changing markets and technologies may shape the future composition of the broadcast and media technology industry. The data tables that accompany the written report provide and regional splits and forecasts to 2018 at the segment and sub-segment levels.

Whether you are a supplier, buyer, or investor in the media technology sector, you won’t want to miss the fourth annual NAB Show event co-produced by Devoncroft Partners and the organizers of the NAB Show.

Designed to be a thought-provoking kickoff to the 2015 NAB Show, this half-day conference examines the “the business of the media business” from the perspective of all levels of the media value chain. It includes panel discussions featuring C-level executives from leading broadcasters, service providers, technology vendors, and private equity investors. Each group will offer a candid assessment of how their respective business models, operational practices, and strategic decision making have been impacted by the dramatic shift in media industry economics.

The keynote, “The Future of TV. One Man’s Opinion.” will be delivered by Bob Bowman, President, Business & Media of Major League Baseball (MLB), who oversees MLB Advanced Media (MLBAM) and MLB Network.

MLBAM has been involved with several recent high-profile streaming events including WrestleMania 31, the opening day of Major League Baseball, the NCAA March Madness basketball tournament, and the recent launch of HBO Now. Bowman is scheduled to take the stage just one hour before the highly anticipated season 5 premiere of “Game of Thrones” becomes available via HBO Now.

The conference will also include presentations of the latest market research on industry trends and financial performance. This includes preliminary excerpts from the Devoncroft Big Broadcast Survey, the industry’s definitive demand-side study of the broadcast and digital media industry; and the 2015 IABM DC Global Market Valuation Report, the industry’s definitive supply-side market sizing report.

In advance of the NAB Show, Devoncroft Partners has published an analysis of the trends and strategic drivers in the broadcast and media technology sector. This report is available to download here (registration required).

This conference is intended for senior executives from technology vendors, end-users, and investment firms in the media technology sector. It provides an excellent opportunity to network with industry executives and the financial community ahead of NAB show commitments.

Approximately 400 executives attended this standing-room only event in 2014. We hope to see you there on Sunday April 12, 2015.

Please note that because this event is part the 2015 NAB Show Media, Finance and Investor Conference, registration is required.

An overview of the conference is included below. Full details are available on the NAB Show website.

Shifting Media Economics: Impact on Strategy, Finance, and Technology

1:40pm – Welcome and Introductions
Presenter:

Peter White, CEO IABM

1:50pm – Review of Market Developments

Josh Stinehour of Devoncroft will take the podium for his annual (enthusiastic) presentation on developments in the media technology sector. If you have any final announcements you would like Josh to consider for his presentation, let him know.

Presenter:

Joshua Stinehour, Principal Analyst Devoncroft Partners

2:15pm – The Broadcast & Media Technology Industry in 2015

Devoncroft founder Joe Zaller will present a data-driven overview of the forces bringing dynamic change to the media technology sector in 2015. This will include preliminary results of the 2015 Big Broadcast Survey, the industry’s most comprehensive demand-side study, and observations from the 2015 IABM DC Global Market Valuation Report, the industry’s definitive supply-side market sizing report.

Presenter:

Joe Zaller, President Devoncroft Partners

2:40pm – Business Strategy Perspectives from Industry Executives

CEOs from four of the media and broadcast industry’s largest technology suppliers will debate the most important commercial issues facing the industry, and discuss their strategies to position their companies for success in a rapidly evolving marketplace. The panelists will also offer opinions on how changes in the business environment are impacting vendors and customers.

Senior technology executives from four leading broadcasters will offer informed perspectives on the most significant industry trends affecting technology budgets and the technology purchase decision. The audience will benefit from an emphasis on the business implications of technology decisions to broadcasters.

A panel of executives from leading media service providers will discuss views on both technology developments and deployment considerations for media organizations. Discussion topics will include solutions for multi-platform content delivery, the economics of outsourcing, how service providers can leverage their scale to deliver increased performance and agility, and how next-generation data center architecture may impact the media ecosystem.

A panel of leading investment professionals in the media and entertainment sector will offer the audience the institutional investor’s perspective on the industry. The discussion will include the panelists’ intelligence-gathering plans for the NAB Show, views on the trends that are driving investment dollars in the sector, and a review of the characteristics influencing the evaluation of an investment opportunity in the media technology industry.

This half-day session was co-produced by Devoncroft Partners, Silverwood Partners, and the organizers of the 2014 NAB Show (to whom both Devoncroft and Silverwood are very grateful).

We had a standing-room only crowd from the moment the doors opened, and attendees were not disappointed by the outstanding information presented on the day. The power of this unique event is that it brings together three ordinarily disparate groups — technology vendors, broadcasters, and financial firms — to discuss and debate important business issues facing the industry at a time of incredibly dynamic change.

We would especially like to thank our speakers and panelists for not only taking times out of their busy lives to prepare for and attend this event, but also (especially) for their thoughtful and often candid assessment of the state of the broadcast industry today, and what the future may bring.

In particular we would like to thank Vince Roberts,EVP Global Operations and Chief Technical Officer of Disney/ABC Television for his outstanding keynote address, which which provided a truly thought-provoking insight into the future of the media industry (and he’s funny too).

In case you missed this event, the full agenda included:

Strategic Industry Analysis: Valuations, M&A, and Equity Financing

Presenters:

Jonathan Hodson-Walker: Managing Partner, Silverwood Partners

Joshua Stinehour: Managing Director, Silverwood Partners

The Broadcast & Media Technology Industry in 2014

Presenter:

Joe Zaller: President, Devoncroft Partners

Business Strategy Perspective From Industry Executives

Moderator:

Joe Zaller – President, Devoncroft Partners

Panelists:

Sam Blackman: CEO and Co-founder, Elemental Technologies

Louis Hernandez. Jr.: President and Chief Executive Officer, Avid

Joop Janssen: CEO, EVS

Michelle Munson: President, CEO and co-founder, Aspera, an IBM company

If you are interested how the dramatic changes impacting the broadcast industry may shape its future, you won’t want to miss the third annual NAB Show event co-produced by Devoncroft, Silverwood Partners and the organizers of the NAB Show.

Now part of the NAB 2014 Broadcast Management Conference, this half-day session is called “Shifting Media Economics: Impact on Strategy, Finance, and Technology.”

It will be held in room N235 of the Las Vegas Convention Center on Sunday April 6th from 1:30 p.m. to 6:00 p.m.

As always, this event features an intensive, information-packed series of presentations and panels that discuss the strategic trends and industry-specific factors influencing the value of media technology companies.

We’ve worked hard to put together an outstanding line-up of speakers and presenters, including top technology buyers, leading technology vendor CEOs, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

The agenda offers attendees the informed opinions of technology purchasers, industry executives, market research organizations, and financial professionals. The event will serve as a thought-provoking kick-off to the 2014 NAB Show.

Highlights will include panel discussions featuring leading vendor CEOs, senior executives from leading broadcasters, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

Jonathan Hodson-Walker and Joshua Stinehour of Silverwood Partners will present an analysis of strategic industry trends and the specific factors that affect company valuations, including an updated perspective on transaction activity and valuations, vendor strategic considerations, and the current M&A environment along with near-term expectations.

This panel of recognized executives at leading vendors will offer views on the critical drivers of company valuation in the industry, the best practices the panelist’s have learned on how to evaluate M&A opportunities, and the preferred approach for integrating M&A into overall growth strategies. The panelists will also consider the question of how broader technology trends are impacting the vendor community in the industry.

Moderator:

Joe Zaller – President, Devoncroft Partners

Panelists:

Sam Blackman: CEO and Co-founder, Elemental Technologies

Louis Hernandez. Jr.: President and Chief Executive Officer, Avid

Joop Janssen: CEO, EVS

Michelle Munson: President, CEO and co-founder, Aspera, an IBM company

3:35 pm – 3:50 pm

IABM Research Overview

Peter White, Chief Executive of the IABM (the trade group that represents suppliers of broadcast technology worldwide), will present an overview of the latest end-user research from the IABM along with selected excerpts from the recently completed IABM DC Global Market Valuation Report, the industry’s definitive supply-side market report.

Presenter:

Peter White: Chief Executive Officer, IABM

3:50 pm – 4:20 pm

The Broadcast Buyer Perspective on Business Models, Trends, and Technology Advancement

A panel of technology decision makers at leading broadcasters will offer informed perspectives on the most significant industry trends affecting technology budgets and the technology purchase decision. The audience will benefit from an emphasis on the business implications of technology decisions to broadcasters.

ABC/Disney EVP and CTO Vince Roberts will highlight the major business model challenges facing the industry and the implications to technology development. Mr. Roberts will focus on the actual commercial factors driving technology deployments today, and what can reasonably be expected in the near future. Referencing initiatives at Disney relating to topics such as IP-based infrastructure and the Cloud, the audience will gain an improved understanding of how changes in media consumption and fundamental technology transitions, ultimately affect technology vendors.

4:45 pm – 5:15 pm

Investor Perspectives on Industry

This panel of leading investment professionals in the media and entertainment sector will offer the audience the institutional investor’s perspective on the industry. The discussion will include the panelist’s intelligence-gathering plans for the NAB Show, views on the trends that are driving investment dollars in the sector, and a review of the characteristics influencing the evaluation of an investment opportunity.

If you are interested how the dramatic changes impacting the broadcast industry may shape its future, you won’t want to miss the third annual NAB Show event co-produced by Devoncroft, Silverwood Partners and the organizers of the NAB Show.

Now part of the NAB 2014 Broadcast Management Conference, this half-day session is called “Shifting Media Economics: Impact on Strategy, Finance, and Technology.” It will be held in room N235 of the Las Vegas Convention Center on Sunday April 6th from 1:30 p.m. to 6:00 p.m.

It will be held in room N235 of the Las Vegas Convention Center on Sunday April 6th from 1:30 p.m. to 6:00 p.m.

As always, this event features an intensive, information-packed series of presentations and panels that discuss the strategic trends and industry-specific factors influencing the value of media technology companies.

We’ve worked hard to put together an outstanding line-up of speakers and presenters, including top technology buyers, leading technology vendor CEOs, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

The agenda offers attendees the informed opinions of technology purchasers, industry executives, market research organizations, and financial professionals. The event will serve as a thought-provoking kick-off to the 2014 NAB Show.

Highlights will include panel discussions featuring leading vendor CEOs, senior executives from leading broadcasters, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

Jonathan Hodson-Walker and Joshua Stinehour of Silverwood Partners will present an analysis of strategic industry trends and the specific factors that affect company valuations, including an updated perspective on transaction activity and valuations, vendor strategic considerations, and the current M&A environment along with near-term expectations.

This panel of recognized executives at leading vendors will offer views on the critical drivers of company valuation in the industry, the best practices the panelist’s have learned on how to evaluate M&A opportunities, and the preferred approach for integrating M&A into overall growth strategies. The panelists will also consider the question of how broader technology trends are impacting the vendor community in the industry.

Moderator:

Joe Zaller – President, Devoncroft Partners

Panelists

Sam Blackman: CEO and Co-founder, Elemental Technologies

Louis Hernandez. Jr.: President and Chief Executive Officer, Avid

Joop Janssen: CEO, EVS

Michelle Munson: President, CEO and co-founder, Aspera, an IBM company

3:35 pm – 3:50 pm

IABM Research Overview

Peter White, Chief Executive of the IABM (the trade group that represents suppliers of broadcast technology worldwide), will present an overview of the latest end-user research from the IABM along with selected excerpts from the recently completed IABM DC Global Market Valuation Report, the industry’s definitive supply-side market report.

Presenter

Peter White: Chief Executive Officer, IABM

3:50 pm – 4:20 pm

The Broadcast Buyer Perspective on Business Models, Trends, and Technology Advancement

A panel of technology decision makers at leading broadcasters will offer informed perspectives on the most significant industry trends affecting technology budgets and the technology purchase decision. The audience will benefit from an emphasis on the business implications of technology decisions to broadcasters.

Moderator:

Joe Zaller – President, Devoncroft Partners

Panelists

Phil Braden: SVP Technology and Applications, PCCW Global

Del Parks: SVP Operations & Engineering, Sinclair Broadcast Group

Todd Daly: EVP Operations & Systems Engineering, Fox Broadcasting

Andy Tennant: Technology Director, Studios, ITV

4:20 pm – 4:45 pm

Keynote: Business Model Changes Technology Changes

ABC/Disney EVP and CTO Vince Roberts will highlight the major business model challenges facing the industry and the implications to technology development. Mr. Roberts will focus on the actual commercial factors driving technology deployments today, and what can reasonably be expected in the near future. Referencing initiatives at Disney relating to topics such as IP-based infrastructure and the Cloud, the audience will gain an improved understanding of how changes in media consumption and fundamental technology transitions, ultimately affect technology vendors.

Presenter:

Vince Roberts: CTO and EVP Global Operations, Disney/ABC Television Group

4:45 pm – 5:15 pm

Investor Perspectives on Industry

This panel of leading investment professionals in the media and entertainment sector will offer the audience the institutional investor’s perspective on the industry. The discussion will include the panelist’s intelligence-gathering plans for the NAB Show, views on the trends that are driving investment dollars in the sector, and a review of the characteristics influencing the evaluation of an investment opportunity.

If you are in Las Vegas to attend the 2013 NAB Show, you don’t want to miss the second annual “Media Technology: Strategy and Valuation,” conference which is being co-produced by Devoncroft, Silverwood Partners and the organizers of the NAB Show.

This event is free for all registered attendees of the 2013 NAB show.

It is being held in room N239/241 of the Las Vegas Convention Center on Sunday April 7th from 1:45 p.m. to 6:00 p.m.

This year’s conference features an intensive, information-packed series of presentations and panels that discuss the strategic trends and industry-specific factors influencing the value of media technology companies.

We’ve worked hard to put together an outstanding line-up of speakers and presenters, including top technology buyers, leading technology vendor CEOs, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

The agenda will offer attendees the informed opinions of technology purchasers, industry executives, market research organizations, and financial professionals. The event will serve as a thought-provoking kick-off to the 2013 NAB Show.

This session is intended for senior executives from technology vendors, end-users, and investment firms in the media technology sector.

We are expecting 200+ attendees based on the latest registration numbers, so it’s a good networking opportunity as well.

Here’s the conference agenda:

1:45 pm – 1:50 pm

WELCOME AND INTRODUCTION

Joe Zaller – President, Devoncroft Partners

1:50 pm – 2:20 pm

NAB SHOW SPROCKIT PRESENTATIONS

Hear from three market-ready start-ups who have been selected by the NAB’s SPROCKIT initiative. This session will include an introduction of the SPROCKIT initiative followed by presentations from three of NAB Show’s inaugural SPROCKIT participants.

Presenter(s):

Hilary DeCesare, Co-Founder and CEO, Everloop

Heidi Messer, Co-Founder & Chairman, Collective[I]

John West, Founder & CEO, The Whistle

2:20 pm – 2:45 pm

THE BROADCAST & MEDIA TECHNOLOGY INDUSTRY IN 2013

Joe Zaller will present a summary of key data derived from the newly published 2013 Big Broadcast Survey (BBS), the largest and most comprehensive study of the broadcast industry. Key results from the 2013 BBS will include key investments areas as well as trends of significance that are impacting these purchasing decisions.

Joe Zaller – President, Devoncroft Partners

2:45 pm – 3:10 pm

STRATEGIC INDUSTRY ANALYSIS: VALUATIONS, M&A, AND EQUITY FINANCING

Jonathan Hodson-Walker and Joshua Stinehour of Silverwood Partners will present an analysis of strategic industry trends and the specific factors that affect company valuations, including transaction activity and valuations; vendor strategic considerations; and the current M&A environment along with near-term expectations. Attendees will also learn which businesses are buyers and investors targeting and why.

Presenter(s):

Jonathan Hodson-Walker – Managing Partner, Silverwood Partners

Joshua Stinehour – Managing Director, Silverwood Partners

3:10 pm – 3:35 pm

M&A, VALUATION PERSPECTIVES FROM INDUSTRY EXECUTIVES

Joe Zaller will moderate a panel of three recognized executives at leading vendors will offer views on the critical drivers of value (in context of M&A) in the industry, and discuss the best practices they’ve learned on how to review an acquisition opportunity and how to integrate M&A into overall growth strategies. Obstacles to further industry consolidation will also be discussed.

Moderator:

Joe Zaller – President, Devoncroft Partners

Panelists:

Dan Castle — CEO, Telestream

Harris Morris – CEO, Harris Broadcast

Denis Suggs — Executive Vice President, Belden

3:45 pm – 4:00 pm

IABM END-USER RESEARCH OVERVIEW

Yves Dupuis, Director of Market Intelligence at the IABM (trade association that represents broadcast technology suppliers) will present an overview of the latest end-user research from the IABM, including the changing requirements of broadcast technology buyers, and what this means for the supply community.

Yves Dupuis — Director of Market Intelligence, IABM

4:00 pm – 4:25 pm

THE BROADCAST TECHNOLOGY BUYER PERSPECTIVE

Joe Zaller will guide a discussion with broadcast executives responsible for technology budgets as they ponder the questions of most significance to decisions on technology purchasing: How are savvy broadcasters aligning known technology expenditures against uncertain multi-platform revenue opportunities in order to counteract the ‘consumer-broadcast disconnect’? How are these companies assessing the business risk of technology purchase decisions today given the uncertainty of future business models?

Clyde Smith, FOX Networks Engineering and Operations will offer a broadcast executive’s perspective on the major business issues facing the industry, what major initiatives and projects have been created to solve these issues, a candid assessment of the results of these initiatives, and a discussion of what is still needed from a technology standpoint to address these issues.

Joe Zaller will moderate this panel of private equity professionals who have made recent investments in the media and entertainment space will offer their unique perspectives on trends of significance for the M&E sector. They will also preview their plans for intelligence-gathering at this year’s NAB Show, the trends that are driving investment dollars in the sector, and what characteristics influence their evaluation of an investment opportunity within the M&E industry.

If you are attending the 2013 NAB show, be sure not to miss the second annual “Media Technology: Strategy and Valuation,” conference which is being co-produced by Devoncroft, Silverwood Partners and the organizers of the NAB Show.

This event is being held in room N239/241 of the Las Vegas Convention Center on Sunday April 7th from 1:45 p.m. to 6:00 p.m., and it’s free for all registered attendees of the 2013 NAB show.

This year’s conference features an intensive, information-packed series of presentations and panels that discuss the strategic trends and industry-specific factors influencing the value of media technology companies.

We’ve worked hard to put together an outstanding line-up of speakers and presenters, including top technology buyers, leading technology vendor CEOs, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

The agenda will offer attendees the informed opinions of technology purchasers, industry executives, market research organizations, and financial professionals. The event will serve as a thought-provoking kick-off to the 2013 NAB Show.

This session is intended for senior executives from technology vendors, end-users, and investment firms in the media technology sector.

Here’s the current lineup of presenters:

1:45 pm – 1:50 pm

WELCOME AND INTRODUCTION

Joe Zaller – President, Devoncroft Partners

1:50 pm – 2:20 pm

NAB SHOW SPROCKIT PRESENTATIONS

Hear from three market-ready start-ups who have been selected by the NAB’s SPROCKIT initiative. This session will include an introduction of the SPROCKIT initiative followed by presentations from three of NAB Show’s inaugural SPROCKIT participants.

Presenter(s):

Hilary DeCesare, Co-Founder and CEO, Everloop

Heidi Messer, Co-Founder & Chairman, Collective[I]

John West, Founder & CEO, The Whistle

2:20 pm – 2:45 pm

THE BROADCAST & MEDIA TECHNOLOGY INDUSTRY IN 2013

Joe Zaller will present a summary of key data derived from the newly published 2013 Big Broadcast Survey (BBS), the largest and most comprehensive study of the broadcast industry. Key results from the 2013 BBS will include key investments areas as well as trends of significance that are impacting these purchasing decisions.

Joe Zaller – President, Devoncroft Partners

2:45 pm – 3:10 pm

STRATEGIC INDUSTRY ANALYSIS: VALUATIONS, M&A, AND EQUITY FINANCING

Jonathan Hodson-Walker and Joshua Stinehour of Silverwood Partners will present an analysis of strategic industry trends and the specific factors that affect company valuations, including transaction activity and valuations; vendor strategic considerations; and the current M&A environment along with near-term expectations. Attendees will also learn which businesses are buyers and investors targeting and why.

Presenter(s):

Jonathan Hodson-Walker – Managing Partner, Silverwood Partners

Joshua Stinehour – Managing Director, Silverwood Partners

3:10 pm – 3:35 pm

M&A, VALUATION PERSPECTIVES FROM INDUSTRY EXECUTIVES

Joe Zaller will moderate a panel of three recognized executives at leading vendors will offer views on the critical drivers of value (in context of M&A) in the industry, and discuss the best practices they’ve learned on how to review an acquisition opportunity and how to integrate M&A into overall growth strategies. Obstacles to further industry consolidation will also be discussed.

Moderator:

Joe Zaller – President, Devoncroft Partners

Panelists:

Dan Castle — CEO, Telestream

Harris Morris – CEO, Harris Broadcast

Denis Suggs, Executive Vice President, Belden

3:45 pm – 4:00 pm

IABM END-USER RESEARCH OVERVIEW

Peter White, Director General IABM will present an overview of the latest end-user research from the IABM, including the changing requirements of broadcast technology buyers, and what this means for the supply community.

Peter White — Director General, IABM

4:00 pm – 4:25 pm

THE BROADCAST TECHNOLOGY BUYER PERSPECTIVE

Joe Zaller will guide a discussion with broadcast executives responsible for technology budgets as they ponder the questions of most significance to decisions on technology purchasing: How are savvy broadcasters aligning known technology expenditures against uncertain multi-platform revenue opportunities in order to counteract the ‘consumer-broadcast disconnect’? How are these companies assessing the business risk of technology purchase decisions today given the uncertainty of future business models?

Clyde Smith, FOX Networks Engineering and Operations will offer a broadcast executive’s perspective on the major business issues facing the industry, what major initiatives and projects have been created to solve these issues, a candid assessment of the results of these initiatives, and a discussion of what is still needed from a technology standpoint to address these issues.

Joe Zaller will moderate this panel of private equity professionals who have made recent investments in the media and entertainment space will offer their unique perspectives on trends of significance for the M&E sector. They will also preview their plans for intelligence-gathering at this year’s NAB Show, the trends that are driving investment dollars in the sector, and what characteristics influence their evaluation of an investment opportunity within the M&E industry.

As you may have seen from this press release, I’ve recently agreed to join the IABM on a part-time basis as the North American development officer.

After the announcement went out, I received many much-appreciated notes of congratulations. A few people also wanted to know what this means, so I thought I’d take a few minutes to explain.

For those who are not aware of the IABM, it’s the trade group that represents broadcast and media technology vendors worldwide. I’ve been involved with the IABM for many years from when I worked for broadcast tech vendors, including a stint on the member’s board from 2006 – 2008.

I’m a fan of the IABM and I think it’s a very worthwhile organization. It provides an array of unique services to its members as well many opportunities for networking.

When I started Devoncroft Partners one of the first things I did was form a partnership with the IABM. As a result, we offer IABM members generous discounts on our syndicated market research reports, and the IABM sells our BBS Global Market Report. In addition to this formal arrangement, we’ve remained close to the IABM and have participated in many of its activities over the past few years.

When Peter White (Director General of the IABM) asked me if I was interested in helping the IABM in the Americas I was concerned about any potential for perceived conflict of interest because both Devoncroft and the IABM produce and sell broadcast industry market intelligence. Peter and I discussed this at length, and I also talked to many people in the broadcast industry including colleagues and clients. The people I talked with were universally positive about the opportunity and no one thought there was any conflict of interest. Based on this positive feedback, and my belief that I can make a difference for the IABM in the Americas, I decided to sign on with them.

The aim of this role is to help the IABM increase its visibility in the Americas, and also to help them promote and sell their various research offerings. This fits in nicely with our existing business at Devoncroft as it continues to grow, expand and take on new clients and projects. My view is that this move will benefit both Devoncroft and the IABM as we move forward.

Last week I wrote an article about how the recession impacted the technology budgets of broadcasters and other purchasers of broadcast technology products.

This showed that broadcast technology spending in EMEA held up better than in the Americas, which was hit particularly hard by the recession. For example, 40% of respondents from the Americas reported that their budgets for 2010 were lower than in the previous year.

So how did this reduction in spending affect the sales of vendors who supply hardware and software products to these customers?

To find out, we asked just under 800 broadcast technology vendors who participated in the 2010 Big Broadcast Survey how their company’s revenues had changed over the past year in terms of percentage growth or decline.

On an overall basis, 45% of vendors reported that their sales had either declined or stayed the same versus the previous year, and about half of respondents reported that their sales had increased – in some cases by quite a bit.

When I saw these results I wanted to know the detail behind them so that I could figure out if one type of vendor had fared better than others, and if so what were the determining factors.

For example: was company size a factor? How about location, type of products sold, or whether the vendor is a “pure-play” broadcast company or a one that operates in multiple markets including broadcast?

Based on these questions, I decided to break out the results by a variety of demographic factors, as shown in the chart below:

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When the results are viewed this way it appears that the largest companies were the most impacted by the recession. 53% of respondents from vendors with 1,000+ employees reported that their sales had either declined or stayed the same.

Large companies were closely followed by respondents based in the Americas, and those from firms that primarily supply hardware products. More than half of these respondents reported that their sales had either declined or stayed the same versus the previous year.

In terms of pure-play versus non-pure-play broadcast vendors, respondents from firms that sell more than 80%+ of their products into the broadcast industry fared slightly worse than those who sell 20% or less of their products into the industry.

So which vendors reported the most growth? The short answer is small companies, software vendors and VC funded private firms (many of whom are undoubtedly small providers of software products).

In terms of overall growth 50% of vendors reported that their revenues had increased versus the previous year. However when you consider companies who provide primarily software products, this number jumps to 62% of respondents.

What about the respondents who said their company’s revenues increased the most? Again, software companies lead the way. 21% of respondents from vendors that sell primarily software products, and 18% of privately held VC-backed companies, reported that their revenue grew by more than 30% versus the previous year. And 18% of small companies (those with 50 employees or less) also reported that their revenues had increased by 30% or more.

When reading these results it’s of course important to keep in mind that revenue growth is one thing, but profitability is another.

This analysis does not consider the profitability of vendors, but I recently wrote about the findings of a recent IABM study in this area as part of a post on my impressions of IBC 2010.

In that post I reported that during an IBC session on the state of the industry, IABM Director General Peter White stated that about 60% of broadcast technology suppliers are now making a profit – up considerably from last year – with European companies performing better in terms of profit performance. For more information on these results, I encourage you to contact the IABM.

If you’re interested in more information about how broadcast technology vendors responded to the 2010 Big Broadcast survey, please contact me and I’ll try to give you the information you need.

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This article is based on the findings from the 2010 Big Broadcast Survey (BBS), a global study of industry trends, technology purchasing behavior and the opinion of vendor brands. With more than 5,600 people in 120+ countries participating, the 2010 version of the BBS is the largest and most comprehensive market study ever done in the broadcast industry.